The account aggregator system will help streamline the lending sector, allowing banks to use user data with consent to provide better services
Currently, nine private banks are already live on the account aggregator system, along with the Union Bank of India, a government-owned bank
Recently, Pine Labs-owned fintech startup Setu’s subsidiary Agya Technologies, PhonePe, NSDL E-Governance and Finvu received account aggregator licences
Finance Minister Nirmala Sitharaman has directed all public sector banks (PSBs) to onboard the account aggregator system by the end of July. The account aggregator system is an undertaking of the central government to ease access to credit and improve credit delivery.
A statement from the Ministry of Finance said, “Sitharaman instructed all the Public Sector Banks to onboard the account aggregator system by the end of July.”